Sample Thesis Paper
Generic strategy for competitive advantage – Porter’s Five Force Analysis
The threat of substitute products
A Forklift is a product that consumers rarely choose to consider for its substitute products if it gives them a reliable service along with an adequate customer support. Considering the fact that the company is one that has recently expanded, we can surmise that the company shall be able to provide increased efficiency in its after-sales service, thereby decreasing the threat it has from substitutes. The threat of substitutes can therefore be inferred to be no more than moderate.
The threat of the entry of new competitors
Forklift types are highly diverse. With regard to the case of the company currently under consideration, the forklift specialty is in heavy-duty machines which require extensive resources and expertise as well as a significant amount of capital. In light of the obstacles posed by the current global recession, it would be reasonable to conclude that the threat of new entrants is low in the subject case.
The bargaining power of customers
The bargaining power of customers is medium in the case of the current company since the use of forklifts is very rarely carried out in a manner such that there is a strong need to have a large team of forklifts working.